June 22, 2017 / 7:01 AM / 2 months ago

Italy - Factors to watch on June 22

The following factors could affect Italian markets on Thursday.

Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. New items are marked with (*).

For a complete list of diary events in Italy please click on .

DEBT

Treasury announces sale of CTZ and BTPei bonds, with relative amounts to be auctioned on June 27.

POLITICS

(*) Several newspapers said the government would issue a new decree, possibly as soon as this weekend, to widen the scope of the 20 billion euro bank rescue fund it created in December as that covers only a precautionary recapitalisation scenario.

COMPANIES

BANCA CARIGE

The board of Genoa-based lender Banca Carige has appointed former UniCredit top executive Paolo Fiorentino as chief executive, two sources said on Wednesday.

In a statement confirming the appointment of Fiorentino, Carige said it would provide clarifications on governance and a bad loan reduction plan by June 23, as requested by the European Central Bank. It will take more time to address the ECB's request about its capital adequacy.

(*) The financial strategy of the bank will be reviewed before the start of July, MF said. The bad loan portfolio of 2.4 billion euros will be sold whole or transferred to a vehicle controlled by an investor. A board, expected on July 3 or 4 will set the size of a planned capital increase which will be 600-700 million euros, MF said.

The bank is preparing a letter to be sent to the ECB on Friday asking for the issue of non performing loans to be examined in more detail, Il Sole 24 Ore said.

INTESA SANPAOLO

Italy's biggest retail bank on Wednesday set tough conditions on an offer to buy the healthy assets of two Veneto-based banks, part of efforts to prevent European authorities from stepping in to wind them down.

(*) The government had not been previously informed of the details of Intesa's proposal and the strict conditions set by the bank have taken many by surprise at the Treasury, Corriere della Sera reported.

(*) The EU Commission fears a sale of the two Veneto banks' "good" assets to Intesa would entail higher costs for taxpayers, possibly above the 6.4 billion euros of the capital shortfall identified by the ECB for the two lenders, La Stampa reported.

(*) La Repubblica said the costs for the state could be as much as 10 billion euros. The state would need to inject 3 billion euros into the "good" banks being transferred to Intesa to offset the impact on the lender's capital of the additional risk weighted assets. Intesa would also benefit from 1.4 billion euros in deferred tax assets. The gap between the book value of the two banks' impaired loans and their selling price is estimated to cost another 5 billion euros, the paper said.

The government won't be able to inject more than 4.5 billion euros in the banks, Messaggero said. The paper said Intesa's plan includes the stakes of the Veneto banks in Arca, Banca Apulia and Banca Nuova, it said.

INTESA SANPAOLO, UNICREDIT, MONTE DEI PASCHI , BANCO BPM, POPOLARE DI BARI

Italian tax police seized documents from the offices of five Italian lenders on Wednesday in an investigation over alleged fraud in relation to the distribution of diamonds to bank clients, sources said.

ENEL

Open Fiber, the Italian broadband infrastructure firm owned by utility Enel and state lender CDP, is set to get a 500 million euro bridge loan to help fund the fast internet network it is rolling out in Italy, three sources said on Wednesday.

(*) MEDIASET

The communications regulator is studying the idea of transferring 20 percent of voting capital to a vehicle whose board would be controlled by the watchdog as a way of resolving the Vivendi issue, La Repubblica said.

SPACE3

Annual general meeting (0930 GMT).

For Italian market data and news, click on codes in brackets:

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FTSE IT allshare index

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FTSE Mid Cap index....

Block trades..........

Stories on Italy...... IT-LEN

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